It maintains a Parent rating of Average.
As recently as 2020, Jackson Square was thriving with more than USD 20 billion in assets under management and a lineup of five mutual funds. Two of those funds, Jackson Square Large-Cap Growth and Jackson Square SMID-Cap Growth, had most of the firm's assets because of their excellent track records over the previous 15 years. However, since 2021, both funds have badly underperformed their Morningstar Categories and benchmarks, and the firm's AUM has plummeted more than 90%, to USD 1.7 billion as of June 30, 2024.
This collapse has put enormous strain on Jackson Square, but the firm has taken reasonable steps to stabilize its business. In 2021 and 2022, it liquidated three of its five mutual funds, and now most of the firm's resources are focused on the SMID-Cap Growth strategy. Between 2022 and 2024, the firm also reduced the size of the investment team from 13 to 8, primarily through retirements and other amicable departures. All five portfolio managers are partners in the firm, and three have over USD 1 million invested in the two remaining Jackson Square funds. There are still plenty of risks here, but it's good to see the managers shouldering that risk along with shareholders.
United States